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(Bloomberg) — Form Energy Inc. has reached an agreement to sell batteries that rely on rust and last for days to data center developer Crusoe, as technology companies rush to find resources to meet the growing power needs of artificial intelligence.
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The battery startup will deliver 12 gigawatt-hours of energy storage to Crusoe starting next year. The terms of the transaction were not disclosed. Form also recently struck a deal to provide a 30 gigawatt-hour battery installation to utility Xcel Energy Inc. to power a Google data center in Minnesota.
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“This really reaffirms the direction of a lot of the market, which is data centers need that firm, fast capacity,” Form Chief Executive Officer Mateo Jaramillo said of the company’s new deal.
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Crusoe said the agreement reflects its approach to building AI infrastructure without necessarily being dependent on the local grid, something the Trump administration has called for as well. The data center developer — which is involved in the massive Stargate project — said its arrangement with Form will protect ratepayers from cost increases and strengthen grid reliability. Long-duration storage remains a niche product, though, and has yet to be deployed at a wide scale.
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The rush to line up electricity to power data centers is boosting interest in emerging technologies such as Form’s iron-air batteries, which can store and discharge electricity for up to 100 hours. Developers see energy storage as a tool that can help get data centers online faster — and potentially without needing to rely on constrained power grids.
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The vast majority of batteries being installed are lithium-ion, which can typically discharge four hours of power. Long-duration storage can help operators tap power during extended periods of grid stress when electricity prices typically skyrocket.
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The batteries for Crusoe’s data centers will be manufactured at Form’s factory in West Virginia, which is ramping up production, Jaramillo said. The startup expects its first energy-storage pilot system to come online this year in Minnesota and has over 75 gigawatt-hours of commercial projects under agreement. Jaramillo said Form’s technology is cost-competitive with other resources, including natural gas, though he declined to provide specifics.
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Form has raised $1.2 billion in financing from investors that include Breakthrough Energy Ventures, TPG Rise Climate and Energy Impact Partners, and its in the middle of raising another round. The company has been laying the groundwork for an initial public offering that could come within 12 months, Jaramillo added.
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